Published 23 August 2024 | By FJP Investment Editorial Team

Buying land from a neighbour can provide extra garden space, improve access, create room for an extension or protect the privacy and future value of your property.

However, purchasing even a small strip of neighbouring land is a formal property transaction. The parties need to establish exactly what is being sold, agree an appropriate price, investigate the title, deal with any mortgages and complete the correct transfer and registration process.

Planning permission, access rights, restrictive covenants and property taxes may also need to be considered. Buying the land does not automatically give you permission to build on it or use it for any purpose you choose.

This guide explains the principal steps and risks involved when buying land from a neighbour, with particular reference to registered land in England and Wales.

Important: Land transactions are highly dependent on the title documents and intended use. Both parties should obtain independent conveyancing and, where appropriate, planning, valuation and tax advice.

Can you buy part of your neighbour’s land?

Yes. A neighbour can sell part of their garden, driveway, field or other land if they have the legal authority to do so.

Both parties must agree:

• the precise area being transferred;
• the purchase price;
• the position of the new boundary;
• who will install and maintain any new fence or wall;
• which access and service rights will be granted or retained;
• whether any restrictions will apply to the land;
• the proposed completion date; and
• who will pay the professional and registration costs.

The arrangement should initially be described as subject to contract. A verbal understanding or informal exchange of messages is not an adequate substitute for the formal conveyancing process.

Why might somebody buy land from a neighbour?

Common reasons include:

• extending a garden;
• creating off-street parking;
• widening a driveway;
• improving access to a garage or outbuilding;
• creating space for an extension;
• constructing a garden office or outbuilding;
• straightening an awkward boundary;
• protecting a view or increasing privacy;
• acquiring land with potential development value; or
• resolving a historic discrepancy between occupation and the registered title.

The intended use should be considered from the outset. A parcel that works well as additional garden space may not provide the legal access, planning status or dimensions required for development.

Step 1: Establish who owns the land

The first practical step is to establish whether the neighbour is interested in selling. If they are, the ownership and tenure of the proposed parcel must be checked.

You can obtain basic title information through HM Land Registry’s property information service. The title register can help identify:

• the registered owner;
• whether the property is freehold or leasehold;
• the title number;
• registered mortgages or charges;
• certain restrictive covenants; and
• rights benefiting or burdening the property.

The title plan provides a visual indication of the registered land’s general extent. It should not be treated as a precise survey of the legal boundary.

If the neighbour only owns a leasehold interest, the freeholder’s involvement or consent may be required. The lease may also restrict whether part of the property can be transferred separately.

What if the neighbouring land is unregistered?

Unregistered land can still be sold, but proving ownership and registering the transaction may require additional work.

The seller’s solicitor may need to examine historic deeds and other evidence showing how the seller acquired the land. The purchase may then trigger an application for first registration with HM Land Registry.

Do not assume that land is unowned merely because it does not appear in an online map search. Establishing ownership of unregistered land can require detailed investigation.

Step 2: Define exactly what is being purchased

The parties need an accurate plan showing the land to be transferred.

This is particularly important where the transaction involves only part of the neighbour’s registered title. HM Land Registry’s TP1 form is normally used to transfer part of a registered title, and a plan identifying the transferred land must accompany it.

The plan should be prepared to meet current Land Registry requirements. Depending on the site, it may be sensible to instruct a land surveyor to measure the area and prepare an appropriate plan.

The plan should correspond with identifiable physical features wherever possible. Unclear dimensions, thick boundary markings or features that do not exist on the ground can create problems during registration and future sales.

Do Land Registry plans show exact boundaries?

Usually not.

HM Land Registry explains that most registered title plans show general boundaries. The red edging indicates the general extent of the registered land but does not ordinarily determine the exact legal line of the boundary.

This distinction matters when purchasing a narrow strip of land. A small difference between the plan and the physical boundary could materially change:

• the width of a proposed driveway;
• whether an extension will fit;
• access for maintenance;
• the position of existing trees or drainage; or
• the amount of usable garden acquired.

If the exact position is important, obtain professional advice rather than relying solely on an online title plan. Government guidance on property boundaries explains the distinction between general and exact boundaries.

Step 3: Agree how the land will be valued

There is no standard price per square metre for a strip of neighbouring land.

Its value may be influenced by:

• its size and location;
• its current use;
• its development potential;
• whether it provides or improves access;
• how much value it could add to the buyer’s property;
• how much value or amenity the seller’s property could lose;
• planning restrictions;
• restrictive covenants and easements;
• the presence of services, trees or drainage;
• the cost of creating a new boundary; and
• the fact that the buyer may be a special purchaser for whom the land has unusual value.

A small parcel may have little value on the open market but significant value when combined with the adjoining property. For example, land that creates vehicular access or allows a valuable extension could be worth considerably more to the neighbouring owner than its existing use suggests.

A chartered surveyor or specialist land valuer can provide an independent assessment. This can help both parties negotiate from a reasoned position and may also be required by a mortgage lender.

Should you make the purchase conditional on planning permission?

If the value of the land depends on obtaining planning permission, consider whether the transaction should be conditional on that permission being granted.

Possible arrangements include:

• agreeing the purchase subject to satisfactory planning permission;
• obtaining pre-application planning advice before exchange;
• negotiating an option to buy the land within an agreed period; or
• completing the purchase without a planning condition and accepting the planning risk.

The appropriate structure will depend on the value and complexity of the proposal. A solicitor should prepare any option or conditional contract.

Step 4: Check whether the seller has a mortgage

If the neighbour’s property is mortgaged, their lender will usually have a registered charge over the entire title, including the land being sold.

The lender’s consent will generally be needed to release the transferred parcel from that charge. This is sometimes described as a partial release of security.

The lender may:

• require a valuation of the property that will remain;
• check that the sale does not materially reduce its security;
• require part or all of the sale proceeds to reduce the mortgage;
• impose administrative and legal charges; or
• refuse consent if the remaining property would be adversely affected.

This should be addressed early. A transaction cannot safely proceed on the assumption that the lender will automatically release the land.

The buyer should also speak to their own mortgage lender if the acquired parcel will be used with a mortgaged property. The lender may need to approve the purchase, the proposed use and any alteration to its security.

Step 5: Investigate restrictions, rights and services

The buyer’s conveyancer should investigate the legal rights and restrictions affecting both the parcel and the properties on either side of the new boundary.

Restrictive covenants

A restrictive covenant may limit how land can be used. It could restrict building, commercial activity, parking, subdivision or particular types of structure.

Planning permission does not automatically override a restrictive covenant. It is possible to obtain planning permission for work that remains prohibited by the title.

Rights of access

The transferred land may need rights over the neighbour’s retained property, or the neighbour may need to retain rights over the land being sold.

Examples include rights to:

• walk or drive across a defined route;
• reach a garage or parking space;
• enter land to inspect or repair a wall;
• use a shared driveway; or
• maintain pipes, cables and drains.

These rights should be expressly addressed in the transfer. Our guide to property access rights and rights of way explains why the precise wording can have long-term consequences.

Drainage and utilities

Check whether water, drainage, electricity, gas, telecommunications or other services run through the land.

The transfer may need to grant rights to use, inspect, repair or replace these services. It may also restrict building above them.

Do not assume that buying land automatically gives you the right to connect it to existing services or move existing infrastructure.

Overage or uplift provisions

A seller may agree to sell at the land’s current value but require an additional payment if planning permission is later obtained or the land is developed.

This is commonly known as overage or uplift. These arrangements can continue for many years and may complicate future sales or mortgage applications, so their wording requires careful legal advice.

Step 6: Check the planning position

Owning land and having planning permission are separate matters.

Planning permission may be required if you intend to:

• build a new structure;
• construct an extension;
• create a separate dwelling;
• form a new vehicular access;
• change the land’s use;
• undertake substantial engineering works; or
• use land previously outside the residential garden as domestic garden.

A material change of use can require planning permission even where no building work is proposed. This can be relevant when agricultural, amenity or other non-residential land is incorporated into a domestic garden.

Some projects may benefit from permitted development rights, but those rights are subject to conditions and limitations. Newly acquired land does not necessarily become part of the property’s planning unit or residential curtilage simply because the same person owns it.

Contact the local planning authority or obtain professional planning advice before assuming that the intended use is permitted. Government guidance explains when planning permission may be required.

Other physical and environmental checks

Depending on the location and proposed use, the buyer may also need to investigate:

• flood risk;
• contaminated land;
• ground stability;
• public sewers and drains;
• protected trees;
• conservation-area restrictions;
• public rights of way;
• ecological constraints;
• Japanese knotweed or other invasive plants; and
• whether the land forms part of a listed building’s setting.

A small transaction does not necessarily mean the due-diligence risks are small. The checks should be proportionate to what the buyer intends to do with the land.

Step 7: Agree the new boundary arrangements

The transfer should make clear what will happen to the physical boundary after completion.

The parties should agree:

• where the new boundary will be positioned;
• whether a fence, wall or hedge will be installed;
• who will pay for the initial work;
• who will maintain it afterwards;
• how access for maintenance will be handled; and
• what will happen to any existing trees, structures or planting.

If the buyer intends to rely on the land for building work, measurements should be confirmed before exchange rather than after the transfer has completed.

Step 8: Instruct independent conveyancers

Each party will normally need independent legal representation. One conveyancer may be unable to act for both neighbours where their interests could conflict.

The conveyancers will deal with matters including:

• investigating ownership and title;
• reviewing mortgages and obtaining lender consent;
• agreeing the transfer plan;
• drafting and negotiating the TP1 transfer;
• creating or reserving access and service rights;
• drafting restrictive covenants;
• dealing with searches and enquiries;
• confirming tax and registration requirements;
• exchanging contracts where applicable;
• completing the purchase; and
• applying to update the Land Registry records.

A transaction involving only a small area can still require detailed drafting. The legal cost may therefore appear high compared with the land’s purchase price.

What costs are involved when buying land from a neighbour?

The buyer should budget for more than the agreed price.

Potential costs include:

• the purchase price;
• the buyer’s conveyancing fees;
• Land Registry fees;
• a survey and transfer plan;
• valuation fees;
• searches;
• planning advice or applications;
• mortgage-lender charges;
• Stamp Duty Land Tax or Land Transaction Tax where applicable;
• new fencing or boundary works;
• utility diversions or new connections; and
• the neighbour’s professional costs, if the agreed terms require the buyer to pay them.

It is common for a seller to ask the buyer to cover some or all of the seller’s reasonable legal, valuation or lender costs, particularly where the buyer initiated the proposal. Any such obligation should be agreed clearly.

Is Stamp Duty payable when buying part of a neighbour’s garden?

Property tax depends on the location, purchase price, nature of the land and any connected transactions.

In England and Northern Ireland, Stamp Duty Land Tax may apply. Wales uses Land Transaction Tax, while Scotland uses Land and Buildings Transaction Tax.

Buying garden land without acquiring an interest in a dwelling is not automatically treated as purchasing an additional home. Nevertheless, the correct tax treatment can depend on the facts, including how the land will be used and whether the acquisition is linked to another transaction.

Your conveyancer or tax adviser should confirm whether a return and payment are required. Do not assume that no tax procedure applies simply because the parcel is small.

Could the seller have to pay Capital Gains Tax?

The sale may also have tax implications for the neighbour.

Private Residence Relief can sometimes cover land forming part of a home’s garden or grounds, but its availability depends on the circumstances. Development land, unusually large grounds, land sold separately from a home or land that no longer forms part of the residential garden may require closer examination.

The seller should obtain their own tax advice before agreeing the net amount they expect to receive.

Does the purchased land automatically merge with your existing property?

Do not assume that the acquired parcel will automatically become indistinguishable from your existing registered title.

The Land Registry application will record the transfer, but the exact registration outcome will depend on the titles and application. Your conveyancer can advise how the new land will be registered and whether any further application concerning the titles is appropriate.

Even if the land remains under a separate title number, it can still be owned and used with the adjoining property. Both titles will need to be considered when the property is later sold or remortgaged.

Can buying neighbouring land increase your property’s value?

It can, but an increase is not guaranteed.

The greatest effect is likely where the land creates a practical benefit, such as:

• off-street parking in an area where parking is scarce;
• better vehicular access;
• space for an extension with the necessary permission;
• a larger and more usable garden;
• greater privacy; or
• development potential.

The amount paid for the land and professional costs should be compared with the likely effect on the combined property’s value. Our guide to how property valuations are reached provides further information about the factors affecting a home’s market value.

Common mistakes to avoid

• Relying on a handshake: Use a formal contract and registered transfer.
• Assuming the title plan is exact: Most plans show only general boundaries.
• Ignoring the seller’s mortgage: The lender may need to release the land from its charge.
• Buying before checking planning: Ownership does not guarantee permission for the intended use.
• Failing to document access: Necessary rights should be expressly granted or reserved.
• Overlooking services: Pipes, drains and cables can affect both use and development.
• Using an unsuitable plan: A defective transfer plan can delay Land Registry registration.
• Ignoring future maintenance: Record responsibility for fences, walls, accessways and shared services.
• Assuming a low purchase price means no tax obligations: Obtain transaction-specific advice.
• Paying solely for hoped-for development value: Consider making the deal conditional on planning permission where appropriate.

Frequently asked questions

Can my neighbour sell me part of their garden?

Yes, provided they own the land and can transfer it. If their property is mortgaged, the lender will normally need to consent to releasing the parcel from its security.

Do I need a solicitor to buy land from a neighbour?

Professional conveyancing is strongly recommended. The transaction may involve title investigation, mortgage releases, a TP1 transfer, access rights, covenants, taxes and Land Registry registration.

Do I need a surveyor?

A surveyor may be needed to measure the parcel, prepare a compliant transfer plan, identify the proposed boundary or value the land. This is particularly important where dimensions or development potential affect the price.

Do I need planning permission to add neighbouring land to my garden?

Possibly. Incorporating land with a different existing use into a residential garden can amount to a material change of use. Ask the local planning authority or a planning professional about the specific land and intended use.

Can I build an extension on land purchased from my neighbour?

Potentially, but buying the land does not itself grant permission to build. Planning rules, building regulations, restrictive covenants, access, drainage, services and mortgage conditions may all need to be considered.

How much should I pay for part of a neighbour’s garden?

There is no fixed rate. The price may reflect the land’s existing use, value added to the buyer’s property, value lost from the seller’s property and any planning or development potential. An independent valuation can help.

Who pays the legal costs?

Each party is ordinarily responsible for their own costs unless they agree otherwise. A seller may ask the buyer to cover the seller’s reasonable legal, valuation and lender expenses because the buyer requested the land sale.

Can a neighbour change their mind after agreeing a price?

Until the transaction becomes legally binding through the appropriate contract process, either party may usually withdraw. This is why initial negotiations should be marked subject to contract and neither side should assume the sale is guaranteed.

Will the land automatically be added to my existing title?

Not necessarily. The Land Registry will process the transfer according to the application and existing titles. Your conveyancer can explain how the purchased parcel will appear in the register.

Final thoughts

Buying land from a neighbour can be worthwhile where it improves access, creates useful space or increases the potential of an existing property.

The physical size of the parcel should not lead either party to treat the transaction casually. A narrow strip of land can involve the same fundamental issues as a larger purchase: ownership, mortgage consent, valuation, boundaries, planning, tax, legal rights and registration.

Start by confirming ownership and defining the exact land. Investigate the intended use before agreeing a price, obtain an appropriate valuation where necessary and appoint professionals with experience in transfers of part.

Clear documentation protects both neighbours and reduces the risk that today’s friendly agreement becomes tomorrow’s boundary, access or ownership dispute.

This article provides general information and does not constitute legal, planning, valuation or tax advice. Requirements differ between jurisdictions and individual properties.